Rep. Heinz’S Response To “Real Estate Legislative Updates” Article

Ross Andrews, assistant to Representative Matt Heinz, sent me the following e-mail in response to my article on “Real estate legislative updates.”

His e-mail that follows is quoted verbatim.

“Representative Heinz asked me to forward this information to you in response to your article in the Payson Roundup.

The intent of the amendment he offered in the Committee on Appropriations on August 17.

His intent was not to additionally tax real estate transactions but to widen and the scope of the Arizona tax base in an effort to make it more stable and equitable.

Representative Heinz asked for a clarification from Legislative Counsel and their response is as follows:

The proposal is that “dwelling and building services” (e.g.) generally describes a subclass of services and for the following list of actual businesses to be exclusive, not inclusive as implied by the word “including”.

Thus: “Dwelling and building services” would include only pest control, fumigation, building maintenance, painting, repair, janitorial, cleaning and maid services.

It would not include construction, development or real estate brokerage or sales. (Construction is already taxed under the contracting classification and would be excluded from the services classification by the phrase “not otherwise classified for taxation under this article on lines 12 & 13.)”

Thanks to Representative Heinz and Ross Andrews for sending the above information to advise us of his intent concerning the amendment.

As stated above, the “intent” of the amendment offered by Rep. Heinz was not to tax real estate transactions, however, the Arizona Association of Realtors felt that this could have been subject to interpretation and could, while not intended, lead to a tax on buyers or sellers of real estate.

It is important to note that the legislature is still trying to tax other services that are not currently taxed as explained above.

We will continue to closely follow the legislature’s activities and try to forewarn you of any legislation that may threaten home ownership with additional taxation.

Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.